The new European Union Gas Storage Regulation dictates that Latvia will need to fill its gas storage facility to 35% of state consumption level by November 2022, as reported by representatives of Ministry of Economics.
The ministry explains that when developing the new regulation the European Commission took into account Latvia’s and Austria’s unique situation. Both countries are the only EU member states in which the capacity of the gas storage facilities exceeds the each individual country’s required gas consumption level.
This means the regulation includes an exception – in Latvia’s case it is 35% of state consumption.
The goal is to ensure 80% and then 90% of the gas storage facility’s capacity, but it is the duty of countries the territory of which hosts the storage facility is to limit the capacity to 35%, leaving the rest for other member states that also use the gas storage facility.
With that, the Ministry of Economics supports the clarified capacity goal and supports the new transmission mechanism that provides shared responsibility for all member states that use the gas storage facility in Latvia.
Otherwise, according to ministry’s representatives, the initial redaction of the new gas storage regulation, the mandatory filling index of 80% and later 90% of available capacity would close off the regional gas market in Baltic States and thereby create enormous uncontrolled financial burden for Latvia if the country is left responsible for compensation of the difference between gas prices at the time of filling the facility and when the gas reaches the consumer. Latvia’s Ministry of Economics did not support the initial redaction of the regulation.
Considering the growing energy prices and the influence of Russian aggression in Ukraine on energy security in Europe and the rest of the world, the ministry supported the need to create a regulation that would govern gas storage facilities, use of their capacity and creation of gas reserves in member states.
With that the ministry is positive about the adoption of the Gas Storage Regulation.
As previously reported, EU member states are to fill their gas storage facilities to 80% of their capacity by November 2022 and in future years to 90%.
European Commission’s representatives in Latvia say that the new regulation adopted on Monday, 27 June, will enhance the security of gas supplies in the EU, considering the upcoming and future winters. The EU Gas Storage Regulation states that Europe is to create gas reserves by winter and its management should be protected against external interference.
Due to the Russian-Ukrainian war the new rules were passed in record short time.
European Commissioner for Energy Kadri Simson mentioned that the positive and constructive approach from the European Parliament and European Council in regards to this proposal is an important step towards EU’s unity, commitment and speed of response to Kremlin’s attempts to weaponize gas exports.
«It is highly important for us to reach new storage indexes and be better prepared if the situation deteriorates even further,» she said.
According to the changes listed in the regulation, 18 member states that have underground gas storage facilities are to fill up 80% of their capacity by 1 November 2022.
In future years this index will be 90%.
Member states that do not have gas storage infrastructure will have to negotiate with countries that do and reach an agreement on storage of gas in neighbouring countries. From now on gas storage facilities are considered critical infrastructure and all storage operators will have to undergo re-certification in the EU to reduce the risk of foreign interference.
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